The following is the monthly payroll for the last three months of the year for Allen's Sporting Goods Shop, 2 Boat Road, Lynn, Massachusetts 01945. The shop is a sole proprietorship owned and operated by Bill Allen. The EIN for Allen's Sporting Goods Shop is 28-9311893.

The employees at Allen's are paid once each month on the last day of the month. Karen Becker is the only employee who has contributed the maximum into Social Security. None of the other employees will reach the Social Security wage base limit by the end of the year. Assume the rate for Social Security to be 6.2% with a wage base maximum of $117,000, and the rate for Medicare to be 1.45% on all earnings. Allen's is classified as a monthly depositor for Form 941 payroll tax deposit purposes.

Your tasks are to do the following:

1. Compute the December OASDI tax for Karen Becker.

2. Journalize the entries to record the employer's payroll tax expense for each period in the general journal. SUTA rate: 5.7%; FUTA rate: 0.6%.

3. Journalize the payment of each tax liability in the general journal.

4. Complete Form 941 for the fourth quarter of the current year.

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OCTOBER FICA Employee Karen Becker Beth Orange Sean Peters Monthly Earnings YTD Earnings OASDI Medicare Federal Income Tax 2,800 3,420 3,860 10,080 $112,500 39,650 43,950 196,100 173.60 40.60 49.59 55.97 $624.96 $146.16 S 526.00 422.00 532.00 $1,480.00 212.04 239.32 NOVEMBER FICA Employee Karen Becker Beth Orange Sean Peters Monthly Earnings YTD Earnings OASDI Medicare Federal Income Tax S 2,860 3,880 3,720 $10,460 115,360 177.32 41.47 43,530 40.56 56.26 47,670 230.64 53.94 $206,560 $648.52 $151.67 597.00 463.00 555.00 $1,615.00 DECEMBER FICA Employee Monthly Earnings YTD Earnings 0ASDI Medicare Federal Income Tax 865.00 477.00 699.00 $2,041.00 Karen Becker Beth Orange Sean Peters 3,880 4,350 $12,500 4,280 119,640 $101.68 62.06 47,410 240.56 56.26 62.93 $219,060 $611.32 $181.25 52,010 269.08